The tenure of the present Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has been nothing short of eventful. His reform policies over the past two years, regarded as the bitter pill needed for sanity in the banking industry, have generated mixed feelings, depending on the angle from which one views them.

Hardly had the heat generated by the recently announced new policy on cash withdrawal settled before the CBN governor reeled out plans to introduce a sort of non-interest banking into the nation's financial sector called Islamic banking. The apex bank, in explaining what the bank was all about, said that it was one of the "models of non-interest banking which serves the same purpose of providing financial services as any other financial institution except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest".

The Vanguard

Governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi

Already, the CBN has rolled out a litany of guidelines that must be adhered to in the process of operating any non-profit financial institution. One of these is that the bank must be subject to the guidelines on "corporate governance for non-interest financial institutions issued by the CBN, the provisions of the code of corporate governance for banks in Nigeria issued by the CBN and any subsequent amendments thereto; and all relevant provisions of Banks and Other Financial Institutions Act (BOFIA) 1991 as amended, as well as the Companies and Allied Matters Act (CAMA) of 1990 as amended."

The protest that met Sanusi's declaration is understandable on two grounds: Nigeria is a secular state where public policies perceived to "favour" a particular religion could have a negative potency to create unnecessary division. Also, there is the belief in some quarters that any financial institution which "operates in accordance with the principles and rules" of a religion contravenes the guidelines of the same existing laws within which the CBN governor intends its operation.
Relevant Links

West Africa
Nigeria
Banking
Religion

However, we submit that the new financial system, in principle, holds no concealed feature other than being an alternative system which could form the much-needed catalyst for the growth of small and medium scale enterprises, considered as the bedrock of national development. It is worth experimenting, especially when assessed from the angle of its merit of non-interest, profit sharing lending. The "Islamic" nomenclature of the system, which generated so much controversy, is more lexical than semantic. This was where the CBN erred. The bank mishandled the awareness campaign of the "Islamic banking" system by overly dwelling on identity rather than principle.

Such negative publicity must be corrected by ensuring that measures are put in place to protect the various interests of the country.The tenure of the present Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has been nothing short of eventful. His reform policies over the past two years, regarded as the bitter pill needed for sanity in the banking industry, have generated mixed feelings, depending on the angle from which one views them.

Hardly had the heat generated by the recently announced new policy on cash withdrawal settled before the CBN governor reeled out plans to introduce a sort of non-interest banking into the nation's financial sector called Islamic banking. The apex bank, in explaining what the bank was all about, said that it was one of the "models of non-interest banking which serves the same purpose of providing financial services as any other financial institution except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest".

The Vanguard

Governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi

Already, the CBN has rolled out a litany of guidelines that must be adhered to in the process of operating any non-profit financial institution. One of these is that the bank must be subject to the guidelines on "corporate governance for non-interest financial institutions issued by the CBN, the provisions of the code of corporate governance for banks in Nigeria issued by the CBN and any subsequent amendments thereto; and all relevant provisions of Banks and Other Financial Institutions Act (BOFIA) 1991 as amended, as well as the Companies and Allied Matters Act (CAMA) of 1990 as amended."

The protest that met Sanusi's declaration is understandable on two grounds: Nigeria is a secular state where public policies perceived to "favour" a particular religion could have a negative potency to create unnecessary division. Also, there is the belief in some quarters that any financial institution which "operates in accordance with the principles and rules" of a religion contravenes the guidelines of the same existing laws within which the CBN governor intends its operation.
Relevant Links

West Africa
Nigeria
Banking
Religion

However, we submit that the new financial system, in principle, holds no concealed feature other than being an alternative system which could form the much-needed catalyst for the growth of small and medium scale enterprises, considered as the bedrock of national development. It is worth experimenting, especially when assessed from the angle of its merit of non-interest, profit sharing lending. The "Islamic" nomenclature of the system, which generated so much controversy, is more lexical than semantic. This was where the CBN erred. The bank mishandled the awareness campaign of the "Islamic banking" system by overly dwelling on identity rather than principle.

Such negative publicity must be corrected by ensuring that measures are put in place to protect the various interests of the country.The tenure of the present Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has been nothing short of eventful. His reform policies over the past two years, regarded as the bitter pill needed for sanity in the banking industry, have generated mixed feelings, depending on the angle from which one views them.

Hardly had the heat generated by the recently announced new policy on cash withdrawal settled before the CBN governor reeled out plans to introduce a sort of non-interest banking into the nation's financial sector called Islamic banking. The apex bank, in explaining what the bank was all about, said that it was one of the "models of non-interest banking which serves the same purpose of providing financial services as any other financial institution except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest".

The Vanguard

Governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi

Already, the CBN has rolled out a litany of guidelines that must be adhered to in the process of operating any non-profit financial institution. One of these is that the bank must be subject to the guidelines on "corporate governance for non-interest financial institutions issued by the CBN, the provisions of the code of corporate governance for banks in Nigeria issued by the CBN and any subsequent amendments thereto; and all relevant provisions of Banks and Other Financial Institutions Act (BOFIA) 1991 as amended, as well as the Companies and Allied Matters Act (CAMA) of 1990 as amended."

The protest that met Sanusi's declaration is understandable on two grounds: Nigeria is a secular state where public policies perceived to "favour" a particular religion could have a negative potency to create unnecessary division. Also, there is the belief in some quarters that any financial institution which "operates in accordance with the principles and rules" of a religion contravenes the guidelines of the same existing laws within which the CBN governor intends its operation.
Relevant Links

West Africa
Nigeria
Banking
Religion

However, we submit that the new financial system, in principle, holds no concealed feature other than being an alternative system which could form the much-needed catalyst for the growth of small and medium scale enterprises, considered as the bedrock of national development. It is worth experimenting, especially when assessed from the angle of its merit of non-interest, profit sharing lending. The "Islamic" nomenclature of the system, which generated so much controversy, is more lexical than semantic. This was where the CBN erred. The bank mishandled the awareness campaign of the "Islamic banking" system by overly dwelling on identity rather than principle.

Such negative publicity must be corrected by ensuring that measures are put in place to protect the various interests of the country.The tenure of the present Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has been nothing short of eventful. His reform policies over the past two years, regarded as the bitter pill needed for sanity in the banking industry, have generated mixed feelings, depending on the angle from which one views them.

Hardly had the heat generated by the recently announced new policy on cash withdrawal settled before the CBN governor reeled out plans to introduce a sort of non-interest banking into the nation's financial sector called Islamic banking. The apex bank, in explaining what the bank was all about, said that it was one of the "models of non-interest banking which serves the same purpose of providing financial services as any other financial institution except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest".

The Vanguard

Governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi

Already, the CBN has rolled out a litany of guidelines that must be adhered to in the process of operating any non-profit financial institution. One of these is that the bank must be subject to the guidelines on "corporate governance for non-interest financial institutions issued by the CBN, the provisions of the code of corporate governance for banks in Nigeria issued by the CBN and any subsequent amendments thereto; and all relevant provisions of Banks and Other Financial Institutions Act (BOFIA) 1991 as amended, as well as the Companies and Allied Matters Act (CAMA) of 1990 as amended."

The protest that met Sanusi's declaration is understandable on two grounds: Nigeria is a secular state where public policies perceived to "favour" a particular religion could have a negative potency to create unnecessary division. Also, there is the belief in some quarters that any financial institution which "operates in accordance with the principles and rules" of a religion contravenes the guidelines of the same existing laws within which the CBN governor intends its operation.
Relevant Links

West Africa
Nigeria
Banking
Religion

However, we submit that the new financial system, in principle, holds no concealed feature other than being an alternative system which could form the much-needed catalyst for the growth of small and medium scale enterprises, considered as the bedrock of national development. It is worth experimenting, especially when assessed from the angle of its merit of non-interest, profit sharing lending. The "Islamic" nomenclature of the system, which generated so much controversy, is more lexical than semantic. This was where the CBN erred. The bank mishandled the awareness campaign of the "Islamic banking" system by overly dwelling on identity rather than principle.

Such negative publicity must be corrected by ensuring that measures are put in place to protect the various interests of the country.The tenure of the present Central Bank of Nigeria (CBN) governor, Mallam Sanusi Lamido Sanusi, has been nothing short of eventful. His reform policies over the past two years, regarded as the bitter pill needed for sanity in the banking industry, have generated mixed feelings, depending on the angle from which one views them.

Hardly had the heat generated by the recently announced new policy on cash withdrawal settled before the CBN governor reeled out plans to introduce a sort of non-interest banking into the nation's financial sector called Islamic banking. The apex bank, in explaining what the bank was all about, said that it was one of the "models of non-interest banking which serves the same purpose of providing financial services as any other financial institution except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest".

The Vanguard

Governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi

Already, the CBN has rolled out a litany of guidelines that must be adhered to in the process of operating any non-profit financial institution. One of these is that the bank must be subject to the guidelines on "corporate governance for non-interest financial institutions issued by the CBN, the provisions of the code of corporate governance for banks in Nigeria issued by the CBN and any subsequent amendments thereto; and all relevant provisions of Banks and Other Financial Institutions Act (BOFIA) 1991 as amended, as well as the Companies and Allied Matters Act (CAMA) of 1990 as amended."

The protest that met Sanusi's declaration is understandable on two grounds: Nigeria is a secular state where public policies perceived to "favour" a particular religion could have a negative potency to create unnecessary division. Also, there is the belief in some quarters that any financial institution which "operates in accordance with the principles and rules" of a religion contravenes the guidelines of the same existing laws within which the CBN governor intends its operation.
However, we submit that the new financial system, in principle, holds no concealed feature other than being an alternative system which could form the much-needed catalyst for the growth of small and medium scale enterprises, considered as the bedrock of national development. It is worth experimenting, especially when assessed from the angle of its merit of non-interest, profit sharing lending. The "Islamic" nomenclature of the system, which generated so much controversy, is more lexical than semantic. This was where the CBN erred. The bank mishandled the awareness campaign of the "Islamic banking" system by overly dwelling on identity rather than principle.

Such negative publicity must be corrected by ensuring that measures are put in place to protect the various interests of the country.